The Philippine insurance industry is embracing FinTech as it adapts to changes brought about by the wave of global technological advancements.

Insurance Commissioner Mr Dennis B Funa told BusinessMirror, “The insurance industry will surely continue to embrace FinTech. It cannot be denied that the evolution of technology has helped our regulated entities to spread their reach. Our people today rely on technology in going about their everyday lives, thus, it is crucial that they have access to insurance products and services at their own convenient time.”

Mr Michael F Rellosa, executive director of the Philippine Insurers and Reinsurers Association (PIRA), the umbrella organisation for nonlife insurance companies in the country, said, “The nonlife insurance industry is actually experiencing a wave of innovations largely driven by the advances in digital technology and the expansion of the availability of Internet service. One area that is most affected by these innovations is distribution.”

He told BusinessMirror that the shift by insurance companies to digital has enabled them to widen their respective distribution reach in the country. In the past, he recalled that agents went to visit potential policyholders on a door-to-door basis just to sell insurance products. But with the Internet and the technological advancements being presented every day, the sale of insurance products or services can now be done online.

“The Insurance Commission (IC) already encourages electronic policies. Some even sell insurance through prepaid cards,” he added.

Regulator's role

The IC continues to encourage its regulated entities to embrace FinTech but added that the actual initiatives come from the entities themselves. The IC has issued at least five documents to encourage insurers to adopt FinTEch.

“What the IC does is come up with policies and regulations that will make this emerging trend safe and truly beneficial for both the insurance providers and their clients,” Mr Funa said.

He also said the IC is veering towards digitising processes and interaction with the insurance industry, starting with computerising insurance agents’ licensing examinations. The insurance regulator also minimised the use of hard copy reports required by its various departments.

“We have an ongoing project which will allow online submission of company reports. The project will further create a digital base for financial data submitted to, then verified, by the IC,” he added.